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PSC approves rate and revenue reductions for Mobile Gas

PSC President Twinkle Cavanaugh
Montgomery – The Alabama Public Service commission today approved historic rate and revenue reductions for Mobile Gas Company and its customers. Yellowhammer was on hand to witness the event first-hand.

The Commission voted to lower the Rate of Return for Mobile Gas Company by the largest one-time decrease on a regulated utility in recent history.

The return for Mobile Gas Company, which has been in place since 2002, was reduced from 13.35% – 13.85% to the lower range of 10.45% – 10.95%.

This reduction in allowed earnings will result in an approximate $2.7 million in annual savings to Mobile Gas company customers, which equates to approximately $31 in savings per customer during each year of the four-year agreement.

PSC President Twinkle Cavanaugh and Commissioner Jeremy Oden have been vocal proponents of holding open and transparent public meetings on the matter, while Commissioner Terry Dunn has called for more costly, closed legal proceedings. Advocates of the open review process pointed out today that the vote to reduce the rate and revenue range for Mobile Gas is proof positive that the process is working as it should.

“This is a victory for the consumers in Mobile,” Cavanaugh said.  “I promised to review all utility rates regulated by the PSC in order to keep utility rates down and, in return, continue to recruit and grow jobs in Alabama.  It all boils down to families, and today we lowered rates for Mobile Gas Customers and helped them keep more of their hard earned money.”

Cavanaugh also offered her special thanks to Public Service Commissioner Jeremy Oden who she said has “worked hard over the past seven months and helped us implement these historic reductions.”

Cavanaugh said past agreements between the PSC and Mobile Gas Company did not have a mechanism to address uncertain economic conditions like those experienced in the United States throughout the last five years, but the new agreement contains a provision that will safeguard consumers by ensuring open and transparent hearings can be held when necessary.

“One of the things we ensured during this thorough public hearing process is the rate payers’ right to have the rate of return examined when the economy is experiencing extreme volatility and changes,” Cavanaugh said.

The PSC is currently engaged in a similar rate review for Alabama Power Company. The last of three public hearings in the Alabama Power review is set to take place July 17.


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2. Obama declares war on energy production
3. Clear contrast continues at PSC hearings
4. Beeker challenging Dunn in PSC Republican primary

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